US and Taiwan sign historic semiconductor trade agreement

The US Department of Commerce announced the signing of a large-scale agreement with Taiwan aimed at restoring American leadership in microchip manufacturing. The agreement provides for a significant reduction in tariffs for Taiwanese exporters in exchange for investment commitments totaling $500 billion. This is reported by Reuters, writes UNN.

DetailsUnder the agreement, the US is reducing mutual tariffs on Taiwanese goods from 20% to 15%, which puts the island on par with Washington’s allies such as Japan and South Korea. For certain categories of goods, including aviation components and generic drugs, a zero tariff rate is established.

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Special conditions are provided for semiconductor manufacturers, such as TSMC. Companies that build factories in the US will be able to import necessary equipment without paying special duties under Article 232 in an amount 2.5 times greater than the planned capacity.

Large-scale investments in the American economyIn response to the easing of the trade regime, Taiwan has committed to ensuring a capital inflow into the US technology sector:

• 250 billion dollars – direct investments by Taiwanese companies in the production of semiconductors, artificial intelligence, and renewable energy;

• 250 billion dollars – Taiwan’s state credit guarantees to support the supplier ecosystem on American soil.

In particular, TSMC is expected to expand its project in Arizona, building at least four additional factories (fabs) in addition to the six already planned.

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